German bank exposure to Greece 'manageable:' Fitch
By William L. Watts
LONDON (MarketWatch) -- German banks' exposure to Greece is "manageable," but contagion risks are high, Fitch Ratings said in a report released Wednesday. "The worst consequence of any Greek sovereign default for German and other European banks would be in a sharp increase in general capital market and creditor risk aversion at a time when many banks are still in rehabilitation mode," said Michael Dawson-Kropf, senior director in Fitch's EMEA financial institutions group. The ratings company said it "does not currently envisage" any rating action on German banks as a result of their direct exposure to Greece., but warned of "high potential contagion risks" if there were any restructuring of Greek sovereign debt.